Landlord Insurance in Canada

Rest easy with the best landlord insurance in Canada

If you own a property that is rented out to tenants, then technically you are a landlord. While rental properties come with so many benefits (namely, the extra income), they also come with risks. To mitigate risk and protect your investment, you may wish to consider investing in owner landlord tenant insurance, known simply as landlord insurance. 

ALIGNED can help you find a landlord insurance policy that meets your needs. With so many coverage options available, it can be daunting to shop for landlord insurance alone. But when you work with ALIGNED, a dedicated business insurance expert will be with you every step of the way. Buying owner landlord insurance just got easier!

Nightmare tenants. You’ve heard those stories, and as a landlord you want to feel safe knowing your property is protected. Landlord insurance is the most important step in making you feel confident that your income property investment can thrive. While some struggle with tenants and the damages or liability concerns they may cause, there’s a simple solution to common problems you face as a landlord.

Rental Property insurance is a great starting place in making sure your business as a landlord can be profitable due to a lower risk of expensive damages. As a Canadian landlord, liability insurance is also a key factor in avoiding costly liability lawsuits.

You want to know that if something unexpected happens on your rental property, your insurance plan will cover you so you don’t incur costly damages. Remaining profitable as a landlord in Canada is reliant on avoiding costs from rental property damage and personal liability. Knowing you have the best rental property insurance for the type of property you own, and the type of tenants you rent or lease to can help you rest easy.

Don’t be fooled by horror stories of bad tenants damaging rental income property and disrupting their landlord’s revenue. There’s a simple solution to mitigating possible damages and continuing to earn money from your rental or commercial property. There are many landlord insurance options and you can count on ALIGNED Insurance to find the best coverage quote for you.

What is landlord insurance and why do I need it?

Landlord insurance protects property owners from financial losses, such as property damage or liability, relating to their rental properties. As mentioned above, rental properties can be risky as you don’t have control over what tenants do. If a tenant slips and falls down the stairs, accidentally sets the kitchen on fire, or steals your personal belongings, landlord insurance can help cover the costs. 

There is a common misconception that home insurance and landlord insurance are one and the same. However, in reality, home insurance only applies to the dwelling you actually occupy, not a rental or income property. Therefore, when you own a tenanted property, the only way to protect it is through landlord insurance which is typically purhcased as a commercial/business insurance product through specialized insurance experts like the Advocates at ALIGNED Insurance.

What does landlord insurance cover?

Landlord insurance can be as comprehensive or minimal as you want, depending on the policy you choose. The goal of any landlord policy is to protect the policyholder against third party liability and damage to their rental property. Therefore, most landlord insurance policies include the following basic coverage: 

  • Rented dwelling/property coverage
  • Landlord’s belongings coverage
  • Loss of rental income coverage
  • Liability coverage

If your landlord insurance policy features the above types of coverage, then you will be covered in the event that your property or possessions are damaged, you lose rental income due to the tenant needing to vacate the property because of a covered loss, and someone injures themselves on your property.

Optional types of landlord insurance coverage that may be available are as follows:

  • Sewer backup coverage
  • Overland water coverage 

Coverage 101 | Common types of Canadian landlord insurance

A. Building insurance for landlords

Just as you will always want a home insurance policy for fire, flood and water damage, and other damages, you’ll want to protect your commercial or rental property. As a landlord, you don’t want to stress about rental property damage every time there’s a power outage or storm. ALIGNED insurance brokers will work with you build liability coverage that meets your specific needs.

B. Furniture and contents insurance

With a furnished rental, tenants may not care for your belongings the same way you would. Ensuring these items could save you thousands. If you’re concerned about the furniture and fixtures on your property being damaged or destroyed, contents insurance can set your mind at ease.

C. Rental income protection

Problems happen. If there’s a problem and your tenants must leave due to a fire, water damage etc., you need income protection. The loss rental income can be another headache to deal with while the problem with your property gets fixed. Protecting your rental income can help you mitigate losses as you deal with other potential problems. As a landlord in Canada, you want to be sure that one disruption on your property doesn’t lead to further rental income loss.

D. Liability insurance

Did you know? As a landlord you are liable, not only for personal injury that may occur on your property, but also damage to the property of others.

If a visitor to your rental income property incurs damage to their personal belongings, you may still be liable. This type of insurance protects you against the unknown risk. You no longer have to fear a potentially costly lawsuit for circumstances that be beyond in your control.

ALIGNED Insurance can help you find the right insurance plan that fits the needs of your rental property. Our brokers will assess rental property insurance option from some of the 65+ top Canadian insurance companies. You can protect yourself against situations you can expect, and also the ones you can’t.

E. Tenant referencing for landlords

You want to know you’re choosing the right tenant for your rental property. By choosing the right tenant, complete with a BackCheck reference, you can rest easy knowing your property is in good hands.

You know that good tenants cause fewer problems and allow you to step away from your property with confidence. Tenant referencing is a proactive measure that can save you time and money in the future. If you have the right tenants in your commercial or rental properties, you know your business as a landlord is secure.

What Are Some Common Misconceptions about Landlord Insurance?

At Aligned, we speak with landlords regularly and quite often we come across the same misunderstandings about condominium insurance coverage, tenant screening and vacant rental properties. We’ve taken this opportunity to answer some of those misconceptions below.  

Do the Condo Fees I Pay Include Insurance Coverage for my Unit?

Usually, a condominium corporation or association will use a part of the condo fees collected to purchase insurance coverage. That liability coverage, however, usually only extends to common areas such as:

  • Hallways
  • Elevators
  • Parking garages
  • Lobbies
  • Stairwells
  • Gyms and other recreational facilities
  • Party rooms

A condominium’s insurance policy will also usually cover what’s behind the interior facing walls of your condo unit. By and large, however, that’s the extent of the condominium’s insurance liability coverage. Any damage that occurs inside the unit may ultimately be the condo unit owner’s responsibility. So if there’s a fire, flood, water damage, sewage backup, etc., depending on the cause, you may have to pay to repair the damage yourself without Landlord Insurance.

*Important Note – If you or your tenant(s) are responsible for damage to a common area that is covered by the condominium’s insurance policy, the condominium corporation or association may sue you to recoup the cost of the deductible. Also, there are usually limits to the condominium’s insurance policy and if the cost of the damage to a common area exceeds that limit, you could be served with a lawsuit claiming that you are liable for paying the difference. 

Think it’s unlikely to happen? Consider the costs to repair gym equipment, a party room if there’s a fire or water damage or an elevator if a tenant’s child pushes all the buttons at once or jumps up and down in it. These situations are common and landlord Insurance coverage may protect you from them.

I’ve Gotten References, Done Background Checks and a Have a Detailed Landlord/Tenant Agreement, I Don’t Need Landlord Insurance 

While all of the above are important for screening tenants and doing your best to protect yourself, life is unpredictable. People lose jobs, relationships break down and everyone reacts differently to life’s pressures. What seems like an ideal situation can devolve over time and sometimes overnight. It’s not uncommon that people take out their frustrations in their living spaces or let their rent payments lapse. 

You may have the legal grounds to have a tenant evicted or a solid court case for damages but the reality is, having a tenant evicted or suing them in civil court both require a lot of your own time, legwork and money and take a long time to get sorted out. Having Landlord Insurance can protect you from losses due to damages to your rental unit and lost rental income without the costs, headaches and stress of going to court or a Landlord/Tenant tribunal.

Is My Rental Unit Covered Even When It’s Empty?

Did you know that if your rental unit is empty for as little as 96 hours it could be considered unoccupied or vacant? If that’s the case, your insurance may not provide coverage for a peril that would otherwise be covered. If your unit is going to be empty for repairs or while you look for new tenants, contact your broker so they can make the necessary adjustments to your Landlord Insurance coverage.

ALIGN yourself with landlord insurance that meets your needs. 

You can call us at +1-866-287-0448. Click Here To Get A Quote or contact one of our Landlord Insurance experts for information or with any questions you may have.

Here’s a selection other posts we’ve written that are relevant to being a landlord that we hope you will find helpful:

Our team of insurance brokers is available to help answer any and all questions you might have about all of our commercial insurance products. If you have a question about business insurance, are uncertain about what a particular coverage term means, or simply want to find commercial insurance that directly aligns with your needs, don’t hesitate to call us toll-free at 1-866-287-0448 or click here to get a quote now.

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